Noble Energy and its partners have acquired a 39% equity stake in the Eastern Mediterranean Gas Company (EMG), the holding company of the Eastern Mediterranean Gas pipeline (EMG gas pipeline).
The US-based oil and gas company’s total acquisition cost of the EMG Pipeline is valued at $185 million while the company has gained a 10% interest in the pipeline.
The EMG gas pipeline transports natural gas volumes into Egypt under Noble Energy’s gas supply agreements with Dolphinus Holdings.
J Keith Elliott – senior vice president, Offshore, Noble Energy, commenting on the acquisition of stake in the EMG subsea pipeline, said: “The closing of the EMG acquisition will support delivery of natural gas from the Tamar and Leviathan fields into Egypt, and represents a major milestone toward Egypt’s goal of becoming a regional energy hub.
“This acquisition, combined with our recently announced Dolphinus gas sales contracts offtake increases, provides further confidence in both the long-term export market and growing cash flows from our Eastern Mediterranean assets.”
The 90-kilometer EMG gas pipeline, which is located mainly offshore, connects the Israeli pipeline and the Egyptian pipeline networks.
EMG gas pipeline capacity
Through the EMG gas pipeline, Noble Energy will be able to support its existing natural gas contracts from Leviathan and Tamar into Egypt, starting from January 2020 and increasing to 650 MMcf/d, gross, by mid-2022.